Coinbase NFT

Does Coinbase store NFTs?

Coinbase NFT does not store your NFTs. Rather, the blockchain that your NFT is located on stores your NFTs, while your wallet address and private keys lets you access and control your NFTs. Coinbase NFT is the social marketplace that lets you display, buy and sell them.

Any NFTs purchased on or created through Coinbase NFT are automatically added to the wallet that was used to purchase them. 

An NFT consists of 2 components:

  • The ERC-721 token 

  • The digital file (and all of its metadata) that the token links to 

This can be a JPEG, a video file, document, etc. While the ERC-721 token always exists on the blockchain, the file that it links to can be stored in a separate database such as a cloud server like AWS or a decentralized file storage service like IPFS.

The InterPlanetary File System or IPFS is a protocol for storing and sharing files on a distributed peer-to-peer network (i.e a blockchain). Storing JPEG files or other media content linked to an NFT on IPFS allows the files to be permanently secured and tamper-proof because it’s recorded on the blockchain. 

IPFS stores files using Content Identifiers (or CIDs). Whenever a piece of data like a PNG image file is uploaded to IPFS, a unique content identifier is generated that is directly tied to the file on the IPFS network and cannot be altered without altering the content itself. 

A CID can only ever refer to one piece of content, which means your file will be permanently linked to that CID. Anyone will be able to retrieve a copy of your PNG file on the IPFS network just like how anyone can retrieve a record of a confirmed transaction on a public blockchain. 

Check the IPFS link before buying an NFT

Before buying an NFT

Always check to see if the digital file the token is linked to is stored on a decentralized file storage service like IPFS. If the NFT links to a digital file that is stored on a centralized server, that file could easily be erased or altered, leaving you with a token that does not link to anything of value. 

While creating an NFT collection

We recommend that you store the linked files on a decentralized file storage service like IPFS. That way, buyers can be assured that they have permanent access to the files linked to the NFT.   

IPFS also gives NFT creators the flexibility to update the metadata of the IPFS file at a later date while still leaving a record of the previous version permanently saved on the blockchain. IPFS allows creators to mint NFTs that will automatically store linked files on the IPFS network.